What Should You Do When Markets Are At All Time Highs

When markets reach heights like this, it’s a great time to evaluate your portfolio to see if you are invested correctly. Too often, investors wait for the market to decline before doing that analysis. That’s the worst time to reevaluate how you’re invested.

Instead, follow the old adage: Buy Low, Sell High. Perhaps, you aren’t as willing to accept a 10%-15% decline as you were 5-10 years ago. If that’s the case we should think about taking profits of the table and moving into a more conservative lineup.

If you’re curious about how your portfolio stacks up to your risk tolerance, please complete this questionnaire. This is an extremely valuable exercise that can compare your personal risk tolerance to your actual investments to quantify how much risk you’re willing to take and how much risk is in your portfolio. Basically, you’re asked a series questions that will result in a risk score. I then analyze your holdings that you maintain with us and investments held elsewhere to arrive at a portfolio risk score. Hopefully, they match but if not we can take steps to tweak your holdings.